UCC Search Shows Multiple Filings Under Similar Names - Which Debtor Records Matter?

Good point about checking SOS records first. I learned this the hard way when I missed a lien because I assumed 'Smith Construction Inc' and 'Smith Construction Incorporated' were obviously the same company. They weren't - turned out to be father and son businesses with nearly identical names.

Wait, so if the legal name on the SOS records is 'ABC Manufacturing, LLC' with the comma, then only UCC filings under that exact name would be valid? What about the other variations?

Not exactly. UCC Article 9 has specific rules about 'seriously misleading' names. If the debtor name on the UCC filing would make it so a search under the correct legal name wouldn't find it, then the filing might be ineffective. But slight variations that wouldn't prevent discovery are usually okay. It's complicated and state-specific.

How does that work exactly? Do you just upload the UCC search results and it tells you which filings are problematic?

Yeah, you upload the search results PDFs and it analyzes all the debtor names, filing numbers, and collateral descriptions. It flags potential matches and inconsistencies that you might not catch manually. Really helpful when you're dealing with multiple name variations like this situation.

Interesting. I usually just do the searches manually but with complex situations like this it sounds like automation could catch things I'd miss.

This. Also check if any of the filings are past their continuation deadlines. A UCC-1 lapses after 5 years unless continued with a UCC-3. If some of those older filings weren't continued, they might not be effective anymore.

But even if they're lapsed, I'd want to verify they were actually the same entity before assuming anything. Better safe than sorry with equipment purchases.

Good point about addresses but EIN numbers aren't always on UCC filings. Depends on the state and how the filer completed the form.

True, but when they are there it makes verification so much easier. I always include EIN when I'm filing UCC-1s for exactly this reason.

I wish it worked that way but the UCC system is pretty literal about exact name matches. There are good legal reasons for it but it definitely makes searches more complicated.

The problem is automated matching could create false positives. Better to be precise than accidentally link filings that aren't actually the same entity.

That's probably overkill unless it's a really expensive piece of equipment. Most basic UCC searches are pretty straightforward if you know what to look for.

Depends on the risk tolerance. I'd rather pay for professional verification than deal with lien problems later.

This is actually really smart. The lenders would definitely know if they filed under different name variations for the same borrower.

Just be prepared for some lenders to be slow to respond or want authorization from the debtor before providing information.

How long did that verification process take? Sounds like it could be a time-saver for complex situations.

Maybe 10 minutes to upload everything and get the analysis. Way faster than manually cross-referencing all the documents and trying to figure out the relationships.

Good point. Equipment can be tricky because it can move between states and filing requirements vary.

Usually you search where the debtor is organized/located, but for equipment it can get complicated if it moves around.

Absolutely agree. I've seen too many deals go sideways because someone assumed name variations were harmless.

Yeah, and even if they are the same entity, you still need to deal with the liens before the purchase. Name verification is just the first step.